1. Field of the Invention
This invention pertains generally to the field of electronic payment processing, and more particularly to improved gateways through which transaction processing networks can be reached.
2. Related Art
There are primarily two ways for a merchant to get credit card transaction data to a transaction processor (either a bank computer or a third party aggregator): dial-up or leased line. The dial-up world is well established and offers the quickest out-of-the-box solution. Merchants purchase or lease a point-of-sale (POS) terminal such as those sold by VERIFONE and dial a 1-800 number for transaction processing. Recently, personal computers (PCs) have made inroads into this area by making available enhanced capabilities and functions. However, such PC-based terminals are still limited to “dial-up” connectivity to a processor's network—thus forcing them to emulate a POS terminal.
The second option for a merchant wishing to process credit card transactions is to lease a dedicated circuit into the transaction processor's network. Such a lease may cost between $500 and $800 per month or more, depending upon the telecommunications carrier. This option requires a merchant to obtain the message specification (the “message spec”) from the transaction processor, write and update custom software to adhere to the message spec, and certify their custom code on the processor's network. This can be time consuming and expensive, but some merchants are willing to go through this effort for two reasons. First, it allows them to develop a custom solution to fit their individual needs. Second, the typical transaction time is reduced to 3-4 seconds because the set-up time associated with ‘modem training’ is eliminated.
What is needed is a solution that combines the strengths and eliminates the weaknesses of these two options. More specifically, what is needed is a method and apparatus for processing credit card transactions that eliminates the delay associated with ‘modem training’ without requiring the expense associated with a dedicated circuit connecting a merchant to a transaction processor and/or writing software to conform to a transaction processor's message spec.